Hotline answer to listing agents calling with this problem.
Listing agent has an ethical duty (NAR article 13) to recommend the seller obtain legal counsel asap.
Legal counsel can discuss the earnest money dispute and potentially suing the buyer for breach of contract and re-marketing the property.
Once the listing agent has made this recommendation for seller to obtain legal counsel asap, then the seller can talk to their lawyer or not…seller can direct the listing agent to re-market or not. Seller shoulders the risks if Seller chooses not to obtain legal counsel. SC Bar Lawyer Referral Service 800-868-2284.
The listing agent’s risk management strategy is keep the evidence of recommending the seller obtain legal counsel asap.
In a breach of contract lawsuit against the buyer, the seller has a duty to mitigate damages, so there is a potential requirement to re-market the property.
Buyer agents often think they can hold the seller hostage as leverage over a $500 earnest money dispute. That is not a good belief.
The Seller’s lawyer can even provide language for contract #2 with the subsequent buyer: "This contract is contingent upon contract on this Property with _________________________ dated _______ 2018 being unenforceable and no lawsuits or legal actions against the seller resulting from this herein decribed contract with ____________________ dated _________ 2018."
Posted by : Byron King on 3/29/18 (Must contact SCR for updates after 3/29/18)
